Why Do Online Businesses Fail? What A Mistake!
Every year people start new businesses. The Financial Times (October 2017) reported that in the UK alone, nearly 660,000 companies were established in 2016 and 608,000 in 2015. These figures seem to suggest business start-ups are on the increase. The sad thing is not all who begin this journey will reach their destinations as there are casualties along the way. The purpose of this post is to unearth the No. 1 reason why online businesses fail.
2 Things You Must Know About
Why People Start Online Businesses?
The quest to find genuine ways to make money online entice people to start internet businesses hoping to gain financial freedom. Also, the desire to live their dreams fully, give people a push to begin some income generating projects of their own working online.
Nowadays, many entrepreneurs choose the route to work online for 1 simple reason. IT WORKS.
Running your own business online is a method Tried, Tested and Proven to work. For example, there were over 3.75 BILLION people in 2017 accessing the internet searching for information and services. The magnitude of this audience goes to show that opportunities to make money online are obviously there. If it works, how then do people get it all wrong?
Get-Rich-Quick Schemes Frustrations
At times the media is to blame for its sensational way of covering news stories. The way it publicises the success stories for those who have made it is beyond comprehension. Such news reports give readers the impression that its POSSIBLE to become rich overnight.
The MailOnline, 8 July 2018
A blogger who turned to online money-making schemes to make ends meet while unemployed has been able to quit her job after earning £100,000.
Another Daily Mail Online
How YOU can make £1,000 before Christmas: Blogger reveals how to earn £100 a week from home through VERY simple ‘side hustles’ – including audio typing and watching videos.
UK Business Insider
This 26-year-old Fortnite streamer says she paid off her mom’s debt with her Twitch earnings.
It’s undeniable that reports of this nature have a high potential to influence people’s thoughts and actions. They entice people to join Get Rich Quick schemes in the hope of finding quick solutions to their money problems.
In the zeal of getting started and have their online businesses up and running, many people blindly fall prey to scams.
Sadly, not all will learn from their mistakes. Worse still, some never recover from their ordeals with scams and end up losing trust in finding genuine methods of making money online.
What I find difficult to understand is why so many people buy into the idea of getting rich overnight. They hurriedly sign-up for programmes, only later to discover they would have been deceived. Scams have caused customers to be more sceptical, more on the watch out before they part with their money.
Rowman and Littlefield (2012) highlight this observation. Having a good-looking site is not enough. Consumers want to feel secure in making online purchases. They want assurance that their privacy and the financial information they release during the process of doing their online transaction is safe and secure.
To solve a problem like this, internet businesses need to display various online safety measures. Otherwise, customers will not feel confident to purchase products online.
Let’s Not Spend Much Time On Business Background
It’s not always the case that people who do well in their online projects have backgrounds in business. However, I feel people who have a business background stand a better chance and tend to go far.
Why ? – because they are not strangers to business ways. I don’t think it will be harmful to anyone who is aspiring to run a successful internet business to find a suitable trainer or a mentor to fill in the knowledge gap.
The gap in knowing how to start your home-based business on the internet. There is quite a lot involved in running your internet business from start to finish.
- Learning how to get started
- Learning how you can find customers
- Learning how to create your website
- Learning how to master social media.
In other words, you need a comprehensive guide to teach you the basics about:
- setting up your home office
- Getting paid and
- Staying ahead of the competition.
No. 1 Reason
Having mentioned all the other factors that contribute to online business failures, I will share with you one thing I have discovered during my course of rubbing shoulders with like-minded people who are also pursuing the same business interests.
Here is how it works
If I want to become an expert in anything, I am better off relying on information I get through involvement and through knowledge.
For some weird reasons, most people think to run a successful business online is rocket science. They overlook the golden rule, ‘Capitalise on your audience, Failure to apply this rule has cost many people their businesses.
Fear of Failure
The situation is compounded when people have fear of failure. When you always have a feeling, ‘I will never win’, at the back of your mind, it will not help you go ahead to achieve your dreams.
A positive mind is a magic! It helps you to remain focused no matter how hard the terrain gets and always aiming to see the bigger picture.
Getting into business with a doubtful mind is s recipe for failure
If you give yourself adequate time to focus on your business, you will succeed. It is possible to become an authority once you have a conviction inside you.
Think of all the businesses that are doing extremely well in your city. Think of how much opportunity is in the online world. Start looking at the entire world not just in your city. The 4 billion people actively searching or looking for products and solutions are your audience.
It’s All About (The) Self-Belief
Perhaps I should have said before you make any effort to understand your customers, you need to believe in yourself.
The next thing is to find out what your customers are buying and what they are looking for. Try by all means to do all you can to understand your customers; be active online and on social media to get information about your niche.
Find out what people are talking about and what’s really bothering them?
Join groups such as Pinterest so that you keep things fresh by keeping up to date. Setting up Google alerts associated with your key phrases and updates within your niche will certainly help.
Let’s say your niche is travel bags, find out where the most popular bags are? What are people looking for?
KEEP FOCUSED ON YOUR NICHE – HAVE FEWER DISTRACTIONS!
Do not make the mistake of delivering something that is not relevant to your website.
For example, displaying bag banners on a food recipe blog. Try by all means to avoid irrelevant distractions on your website by promoting things that are not relevant to your site or niche. If your niche doesn’t work, fair enough, there are plenty of other niches to choose from.
Sources of information are plenty, so you need to dig deeper to find out. You can get all sorts of ideas from magazines, news headlines and ads. If you go to local online magazine.com, you will be able to search for things that are actively being promoted.
The idea is you need to own those ideas that people are looking for if you are to become an authority, It takes time to get to a level like that, It takes approximately one year or more, provided you are willing to give it time. Work on your business the same way you would work for your own legacy.
Get into the habit of keeping diaries and taking notes of things you come across as you are navigating the online world including affiliate programmes and tools to leverage in your business. Take note of important dates and events that are revered by people. To add, explore new categories you can come up with in your niche. For instance, being in a football niche, see injury products to leverage in.
BRANCHING INTO OTHER NICHES
After establishing your brand and authority, you can now branch into other niches to retain your value and quality. You will be surprised by the endless flow of ideas you will have ultimately but not having enough time to attend to them all. This will lead to endless growth depending on how much you are willing to work and hire people.
Write product or service reviews to help people buy things you are promoting. Also, make recommendations to them. The more information and authority you have, the higher the conversions you get.
People have a tendency of just throwing reviews without doing enough research. You should give it much thought so that you come across as real and authentic. Besides focusing on the product itself, also focus on how it works. For example, how your body will work because of using a certain product. Really immerse yourself in your niche.
Late me hasten to say it’s not something that will happen overnight. There is going to be some ups and downs along the way. Some people have fears of not having an affiliate market space.
Let me assure you, companies out there are seeking website with authority plus adequate content. So, we are now in a better place to leave a mark. A lot of people have this natural doubt which they accrue over time and they will give you all sorts of excuses. If other people’s websites are doing well, they are no different from you. Work hard to get the qualities of an expert.
What Is An Expert?
Definitions first, please. If there’s such a thing called an expert, then what is it?
An Expert Definition:
An expert, more generally, is a person with extensive knowledge or ability based on research, experience, or occupation and in a particular area of study.
So, start helping people in a way that they become confident about the information you give them. Research for relevant information so that you put out content that helps people. The type of content that will make them say thank you and build trust in you. Nobody starts up by being an expert in something. So. the ball is in your court to live your dream now.
To stay focused, avoid listening to all sorts of advice like you can become a millionaire within 24 hours yet you know you are not able to give it time. Be more efficient at doing things and keep going with a certain level of persistence. Hurdles do come and are part of our businesses, as well as growth and learning curves.
Running an online business is not an easy road to take.
“Never measure the height of a mountain until you have reached the top. Then you will see how low it was” by Dag Hammarskjold.
- So, give yourself plenty of time to understand how to create and grow your business in your own “niche.”
- There are MILLIONS of different ideas that you can potentially tap into online and exploit them.
- Understanding how you can capitalize on trafﬁc methods from Search Engine Optimization, Facebook and Social Media, to Pay Per Click, is essential.
- Above all, have confidence.
Please feel free to leave questions below. I will get back to you as soon as possible. Many thanks for stopping by.